Exam 29: Agency Formation and Termination

Ashley owns a piece of vacant real estate through which a small river runs.Ashley hires Warren, a licensed real estate broker, to list the property for sale and help sell the property.While inquiring in the neighborhood, Ashley's neighbor Lenny tells Warren that a chemical plant upstream has polluted his property and that Warren should have environmental engineers test the soil on Ashley's property as well.Warren does not tell Ashley about Lenny's suggestion.Warren manages to find a buyer for Ashley's property in Martha.It is later discovered that the property Martha bought from Ashley is also polluted.What important agent's duty has Warren failed to perform?

Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a potential buyer, and finalize a deal above a stipulated price.Wilhelm contracts Chris, a real estate broker, and intends him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses, a home improvement company to renovate the house.ReNowait completes their work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services. -Who is the principal during the land sale transaction?

An agency that occurs when a principal and an agent do not expressly create an agency, but it is inferred from the conduct of the parties is known as ________.

In an agency by ratification, the agent is relieved of any liability for misrepresentation.

A durable power of attorney remains effective even if the principal is incapacitated.

What role does ReNowait Goodhouses perform?

A constructive trust helps the agent retain profits made during the completion of the agency.

In a contingency-fee contract, the principal must pay the agent prior to completion of agency.

A power of attorney where a principal confers powers on an agent to act in specified matters on the principal's behalf is referred to as ________.

A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's ________.

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act.

Marlon intends to sell a piece of real estate he owns and contracts Nita, a real estate broker, to make the sale.In the contract, Marlon authorizes Nita to make the sale at or above a minimum price he wants and the date by which he wants the sale to be completed.The contract also stipulates that Marlon should not hire another broker to sell that piece of land till the expiry of the contract period.Nita finds a suitable buyer, makes the sale in time, and is paid by Marlon for her services. -What kind of contract existed between Marlon and Nita?

Which of the following types of relationship exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on behalf his or her behalf?

A(n)________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.

An employer-employee relationship when an employer gives an employee authority to act and enter into contracts on his or her behalf.

Parties with whom the agent has dealt with directly must be given direct notices of termination of agency.

What sort of commercial relationship exists between Martin and William have?

What is imputed knowledge?

If a principal and an agent enter into an express agency contract, the principal cannot employ any agent other than the exclusive agent.

The ________ is principal's duty to cover the agent for any losses the agent suffers because of the principal's conduct.